Yeah I have an MK4...
The quote I got from a dealer was indeed ridiculous. $1200+ for the timing belt kit including labour, plus another $850 to change the brake pads (!!!), $600 for a standard service, $700 to change the radiator.... you get the picture. PLUS that was when the car still only have 90,000km on the clock (has 105,000km now)
I told them to get bent, acquired the parts from Jmac and got it serviced by Stephen in Abbotsford (both found through this forum) and got it all done including parts and labour for less than half that price.
In short, unless you are under warranty and want the log books all done at the same dealer for warranty purposes, I simply see no reason to ever set foot in a dealer's service centre.